Company Number: 14129738

Analysis Date: 2025-07-29 12:26 UTC

1. Risk Rating: LOW
   The company demonstrates a positive net current asset position with increasing shareholders' funds, timely filings, and no signs of insolvency or regulatory non-compliance, supporting a low risk rating at this stage.

2. Key Concerns:

• Negative net current assets in the initial two years (2022, 2023) indicate early liquidity pressures that required turnaround.
• Very small scale of operations (micro-entity status, single employee) may constrain operational stability and growth potential.
• Reliance on a single controlling individual (75-100% ownership and voting rights) presents governance concentration risk.

3. Positive Indicators:

• Significant improvement in net current assets from -£366 in 2023 to +£9,228 in 2024 suggests better liquidity management.
• Shareholders’ funds increased markedly from £100 to £10,047, indicating retained earnings or capital injection.
• Accounts and confirmation statements are filed on time with no overdue notices, reflecting good regulatory compliance.
• The company is active with no insolvency proceedings and operates in a service sector (advertising agencies) that can have flexible cost structures.

4. Due Diligence Notes:

• Review detailed profit and loss account and cash flow statements (not provided) to confirm sources of liquidity improvement and operational profitability.
• Investigate the nature and terms of current liabilities (£55,025) to assess short-term repayment risks.
• Evaluate the governance structure given sole control by a single director and potential operational dependencies on this individual.
• Confirm no outstanding or contingent liabilities exist that could impair solvency.
• Explore business plan and client base to assess sustainability and growth prospects in advertising sector.